Case Study | Residual Stock Loan – Sydney, NSW

February 18

$15.45M, Residual Stock @ 80% LVR, Debt Restructure, Sydney Metro, NSW 

Background

Our client engaged with DFP to assist in procuring funds to:

  • Refinance a recently completed townhouse project and cross collateralised 2nd facility secured by a portfolio of residential properties
  • The key objective to lower the current borrowing costs.

The Results

1. Settlement of a $12.26m First Mortgage Facility

  • Geared to 80% Loan to Value (LVR)
  • Structured on a two-tier basis
    (Senior tranche to 65% LVR, Second tranche to 80% LVR)
  • Capitalised interest to assist in the sell down of the townhouses
  • An agreement to release part sale proceeds to the Second Mortgage lender once the First Mortgage debt reduced to 65% LVR
  • Settled on 6-month-old valuation 

2. Settlement of a $3.20m Second Mortgage Facility

  • Geared to 75% Loan to Value (LVR)
  • 2nd behind $11.5m (combined) bank loans
  • No valuation required (inspection only by lender)
  • Competitive rates and fees
  • Capitalised interest

To discuss your finance options for your next project, request a call back.


Tags

Residual Stock


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